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| The logo of e-commerce Coupang is seen outside its headquarters in southern Seoul in this photo taken in 2021. Korea Times file |
By Yi Whan-woo
E-commerce giant Coupang appears to be considering advancing into the online loan market, according to industry sources, Friday, after starting as a startup in 2010 and expanding its business portfolio into travel, food delivery and video streaming services, among others.
The sources said CFC Preparatory Corp., a corporate entity set up by Coupang in January, submitted documents this month to the Financial Supervisory Service (FSS) to register as a new business specialized in credit loans.
It is the first time CFC Preparatory Corp. has specified its business purpose after its establishment, amid wild speculations that it may be aimed at management consulting, investment or real estate.
Coupang could not be reached for comment, while an FSC official confirmed receipt of Coupang's application concerning its loan business plan.
The sources said CFC Preparatory Corp. also was renamed as Coupang Financial, similar to Naver Financial, a loan service platform run by search giant Naver Corp.
In partnership with Mirae Asset Capital, Naver Financial attracted small business owners active offline as its customers for small loans without collateral ― the first such service of its kind in the Korean fintech industry.
"And this strategy is what Coupang Financial is expected to emulate," a market observer said.
The sources said Coupang Financial is qualified to win a license for its loan business in terms of its capital that amounts to 40 billion won ($30.7 million), which is more than the minimum 20 billion won as required by law.
It is speculated that Coupang has been preparing gradually but persistently to advance into the loan market, according to the sources.
They pointed out CFC Preparatory Corp. was set up as a subsidiary of Coupang Pay, the online payment arm of Coupang with which it shares business characteristics.
In 2019, Coupang registered Coupang Financial as a brand name with the Korean Intellectual Property Office.
Meanwhile, some sources speculated Coupang may advance into the real estate sector, noting its mainstream online shopping business requires spaces nationwide to store, pack, pick up and ship products through fulfillment centers.
